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Obviously we are nearing the end of the race that is the graphical evolution. Video games are sharper, with better lightning, shadowing, textures, models, etc... PC already proves it already can even challenge real life at some moments with Crysi. On consoles' part, they will have to wait for the next generation.

Within a few years, the visuals of videogames will most likely be more limited by budget rather than techonology. PC and Consoles will have graphics more and more alike, and the technological advantage of PCs won't be used for more than just extra AA/AF,  and such it will be cheaper to buy PCs that will even challenge Consoles price-wise (which is already happening today - a $500 PC runs games better than any console). So who benefits the most? PC or Consoles? (don't answer 'gamers', we all know that) I will give a few reasons for each side, in relation to the next generation of gaming:

PC:

- Technology will be cheaper, and because of that PC will be able to challenge Consoles price-wise almost from their launch. Reasoning? In just 1.5 years after this generation's PS3/Wii launch, for $500 you can get a PC that puts games graphically better than any console (and that's just $100 difference from PS3).

- Low End PC's will be good enough to show PS3/360 graphical quality atleast. Reasoning? Today Crysis on low settings crushes every DC/PS2/GC/Xbox game, and even 98% of Wii games.

- Decrease of Hardware Cost will make and prove once again that PC is the cheapest platform for gaming. Reasoning? PC has the cheapest games, and no near-obligatory subscriptions(cough*Xbox Live*cough)

 

Consoles:

- Little Difference in graphical quality will make PC 'obsolete' for visual purpose. Reasoning? Obvious and already explained.

- Longer generation cycles. Reasoning? If technology is less important, then there won't be as much need to rush for future generations.

- Consoles will be cheaper. Reasoning? Technology gets  cheaper, though the decrease in price won't be as steep as PC's.